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MAY 29, 2020
STOCKS – WFC
MACRO – SPY, GLD, SMH, DOLLAR
MIKE’S READING THE MARKET PREMIUM CONTENT –
- Thinking About Where Stocks Go Next
- Nearing A Major Turning Point -Midday
- Options Bet Indicate Apple May Drop Soon
- Copper And Stocks – Morning Commentary
- DEALERS HOLDING THE S&P STEADY
Stocks are flat at this point of the day and have been bouncing around quite a bit. S&P 500 futures had been down quite a bit overnight and have managed to bounce back. It seems like volatility in the market is starting to pick up these the last few days. It is coming at a time when there is a lot of economic data coming next week, with ISM and job reports. These will be rather significant reports because they will be measured during a time that we have seen the economy largely reopen, so to some degree, it will be a moment of truth.
So far, the regional data I have seen suggests an improvement in May over April. However, the data in May is still bad and is akin to the recession of 2008-09. So I’m not sure that it is good. Therefore the increasing amount of volatility could be a signal of some nervousness around this incoming data. Then through in the potential for what may come out against China later today, and things could start to heat up. I went back and watched a video I did in May 2019, and it seems to me that using the 2019 playbook suggests that Trump is likely to be tough on China, especially since markets are significantly higher than their March lows.
If we should continue lower today, than the 3,000 level is likely to act as support.
Dollar
The dollar index is starting to breakdown, so watch this closely.
Gold (GLD)
That is helping to lift gold just a bit and could push gold back on the path towards $1800.
Wells Fargo (WFC)
Wells Fargo is moving down again today, and as I noted in a free story the stock is likely heading back to $26. Free story – Wells Fargo’s Stock May Soon Reverse Lower
Semis (SMH)
Keep an eye on the SMH; the ETF appears to be forming a triple top on the intraday chart with a drop below $135, confirming the pattern.
That’s going to be all, have a great Friday
-Mike
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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